Delta Airlines 2011 Annual Report Download - page 14

Concern about aviation environmental issues, including climate change and greenhouse gases, has led to taxes on our operations in the United Kingdom
and in Germany, both of which have levied taxes directly on our customers. We may face additional regulation of aircraft emissions in the United States and
abroad and become subject to further taxes, charges or additional requirements to obtain permits or purchase allowances or emission credits for greenhouse
gas emissions in various jurisdictions. This could result in taxation or permitting requirements from multiple jurisdictions for the same operations. Ongoing
bilateral discussions between the United States and other nations as well as discussions at the ICAO Assembly and Conference of the Parties, most recently in
Durbin in December 2011, may lead to international treaties or other actions focusing on reducing greenhouse gas emissions from aviation.
The European Union has required its member states to implement regulations including aviation in its Emissions Trading Scheme (“ETS”). Under these
regulations, any airline with flights originating or landing in the European Union are subject to the ETS and, beginning in 2012, are required to purchase
emissions allowances if the airline exceeds the number of free allowances allocated to it under the ETS. We expect that this system will impose significant
costs on our operations in the European Union. Numerous countries, including the U.S., and airline groups continue to oppose the European Union ETS.
Cap and trade restrictions have also been proposed in the United States. In addition, other legislative or regulatory action, including by the EPA, to
regulate greenhouse gas emissions is possible. In particular, the EPA has found that greenhouse gases threaten the public health and welfare, which could
result in regulation of greenhouse gas emissions from aircraft. In the event that legislation or regulation is enacted in the U.S. or in the event similar legislation
or regulation is enacted in jurisdictions other than the European Union where we operate or where we may operate in the future, it could result in significant
costs for us and the airline industry. In addition to direct costs, such regulation may have a greater effect on the airline industry through increases in fuel costs
that could result from fuel suppliers passing on increased costs that they incur under such a system. We are monitoring and evaluating the potential impact of
such legislative and regulatory developments.
We seek to minimize the impact of carbon emissions from our operations through reductions in our fuel consumption and other efforts. We have reduced
the fuel needs of our aircraft fleet through the retirement and replacement of certain elements of our fleet and with newer, more fuel efficient aircraft. In
addition, we have implemented fuel saving procedures in our flight and ground support operations that further reduce carbon emissions. We are also
supporting efforts to develop alternative fuels and efforts to modernize the air traffic control system in the U.S., as part of our efforts to reduce our emissions
and minimize our impact on the environment.
Noise. The Airport Noise and Capacity Act of 1990 recognizes the rights of operators of airports with noise problems to implement local noise abatement
programs so long as such programs do not interfere unreasonably with interstate or foreign commerce or the national air transportation system. This statute
generally provides that local noise restrictions on Stage 3 aircraft first effective after October 1, 1990, require FAA approval. While we have had sufficient
scheduling flexibility to accommodate local noise restrictions in the past, our operations could be adversely impacted if locally-imposed regulations become
more restrictive or widespread.
Other Environmental Matters. We have been identified by the EPA as a potentially responsible party (a “PRP”) with respect to certain Superfund Sites,
and entered into consent decrees or settlements regarding some of these sites. Our alleged disposal volume at each of these sites was small or was considered
de minimis when compared to the total contributions of all PRPs at each site. We are aware of soil and/or ground water contamination present on our current
or former leaseholds at several domestic airports. To address this contamination, we have a program in place to investigate and, if appropriate, remediate these
sites. Although the ultimate outcome of these matters cannot be predicted with certainty, we believe that the resolution of these matters will not have a
material adverse effect on our consolidated financial statements.
We are also subject to various other federal, state and local laws governing environmental matters, including the management and disposal of chemicals,
waste and hazardous materials, protection of surface and subsurface waters, and regulation of air emissions and aircraft drinking water.
Civil Reserve Air Fleet Program
We participate in the Civil Reserve Air Fleet program (the “CRAF Program”), which permits the U.S. military to use the aircraft and crew resources of
participating U.S. airlines during airlift emergencies, national emergencies or times of war. We have agreed to make available under the CRAF Program a
portion of our international long-range aircraft during the contract period ending September 30, 2012. We have also committed aircraft to international short-
range requirements. The CRAF Program has only been activated twice since it was created in 1951.
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